Blue-chip stocks are well-known for their track record and resilience.
Many investors love to include such stocks within their portfolios as they offer stability while also paying a dividend.
Of late, several blue-chip stocks saw their share prices tumbling to 52-week lows because of lingering worries over the macroeconomic environment.
This price action may present a good opportunity for investors to scoop up shares of solidly-run companies on the cheap.
Here are four blue-chip stocks that are touching their year-low that should be on your radar.
CapitaLand Investment Limited (SGX: 9CI)
CapitaLand Investment Limited, or CLI, is a real estate asset manager with S$134 billion of assets under management (AUM) and nearly S$100 billion of funds under management (FUM) as of 31 December 2023.
It also owns six listed REITs and business trusts along with more than 30 private investment vehicles across Asia Pacific, Europe, and the US.
CLI’s share price has tumbled by 15.4% year-to-date (YTD) and recently touched a 52-week low of S$2.63.
The property investment giant had reported a lower core net profit for 2023 but maintained its dividend of S$0.12 for the year.
2023 saw revenue dipping by 3.2% year on year to S$2.8 billion with net profit plunging 79% year on year to S$181 million.
After excluding one-off revaluation gains/losses and impairments, CLI’s core net profit would only have declined by 6.7% year on year to S$568 million.
Despite the slightly weaker result, there was reason to be optimistic.
The group saw its FUM increase by S$4 billion from S$96 billion back in February 2023.
Its lodging management division, anchored by The Ascott, also saw fee-income-related revenue jump 28% year on year to S$331 million in 2023.
CLI’s private fundraising arm saw a 42% year-on-year jump in the total equity committed to S$3.5 billion.
Capital recycling continues to help add to the group’s AUM.
Of the total divestment value of S$2.1 billion for 2023, around 62% was retained as FUM.
City Developments Limited (SGX: C09)
City Developments Limited, or CDL, is a global real estate company with a network spanning 143 locations in 28 countries.
Its portfolio of properties includes residences, offices, hotels, retail malls, and integrated developments.
Shares of the property giant slid by 15.7% YTD to S$5.57 after touching a year-low of S$5.55.
CDL reported a record revenue for 2023 but investors may have missed the finer details as its headline net profit showed a sharp 75% year-on-year plunge.
2022’s net profit included substantial divestment gains which boosted the overall net profit.
When excluded, 2023’s core net profit would have soared fourfold year on year to S$188.6 million.
2023’s total dividend of S$0.12 was, however, lower than the prior year’s S$0.28 because of the absence of divestment gains.
CDL completed S$2.4 billion of acquisitions and investments last year while also boosting its recurring income stream with investments in the purpose-built student accommodation (PBSA) and private rented sector (PRS) portfolios.
It also has a healthy Singapore residential launch pipeline of around 1,800 units for this year.
CDL’s hotel operations division enjoyed an improved performance and the group is also concurrently working on asset enhancement initiatives for City Square Mall in Singapore.
Jardine Cycle & Carriage (SGX: C07)
Jardine Cycle & Carriage, or JC&C, is an investment holding company that owns businesses such as Astra, THACO (Thailand), Direct Motor Interests, and other investments.
Shares of the conglomerate fell 18.4% YTD and touched its 52-week low of S$24.42 recently.
JC&C delivered an encouraging set of earnings for 2023.
Revenue inched up 3% year on year to US$22.2 billion while underlying net profit rose 6% year on year to US$1.2 billion.
The group raised its dividend per share by 6% year on year from US$1.11 to US$1.18.
The conglomerate also generated a positive free cash flow of US$971.8 million, though this was less than half of the US$2 billion that was generated in the prior year.
Looking ahead, the group expects a challenging year marked by lower commodity prices with only a mild recovery expected for Vietnam.
Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land, or HKL, is a property development, management, and investment group.
The group owns and manages more than 850,000 square metres of prime office and luxury retail assets in cities such as Singapore, Hong Kong, Beijing, and Jakarta.
Shares of HKL have slid 10.4% YTD and recently hit their 52-week low of US$3.06.
HKL released a downbeat business update for the third quarter of 2023 (3Q 2023).
In it, the group announced that its underlying net profit was lower year on year because of lower contributions from its Hong Kong office portfolio.
There were also lower contributions from its development properties division because of the timing of planned sales completions.
Higher interest rates also resulted in higher finance charges which ate into net profit.
Full-year 2023 profits are expected to be “moderately lower” than the prior year’s, also because of the write-down in the investment value of two residential properties in Wuhan, China.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
